**South Korean Politicians Report Their Crypto Wallets Are Just ‘Crypto Dust’**
**Politics**
**South Korea**
An MP disclosed he sold $85,700 in Bitcoin right after announcing his cryptocurrency holdings.
**Last updated: September 22, 2024, 19:30 EDT**
**Author**
Tim Alper
**Author**
Tim Alper
**About the Author**
Tim Alper is a British journalist and feature writer with Cryptonews.com since 2018. His work has appeared in esteemed outlets such as the BBC, the Guardian, and Chosun Ilbo.
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**South Korean lawmakers are expressing that their crypto wallets are filled with little more than “crypto dust” as they seek to distance themselves from token ownership amidst ongoing political scandals related to cryptocurrencies.**
According to the *Sisa Journal*, many prominent lawmakers who previously held cryptocurrencies have opted to sell their assets. This trend appears to be influenced by various political controversies surrounding crypto ownership.
**Crypto Dust: What Remains**
At the forefront of these controversies is the *Coin Gate* scandal, where former lawmaker Kim Nam-guk, a member of a crypto-focused parliamentary committee, faced accusations of insider trading in cryptocurrencies. Further allegations led to a climate of suspicion, with lawmakers accusing each other of secretly owning tokens ahead of elections.
As a result, South Korean legislators and their families are now mandated to declare their cryptocurrency holdings. Faced with the prospect of public scrutiny, many have chosen to liquidate their assets, leaving them with wallets that contain little more than “crypto dust” and minimal amounts of coins obtained through airdrops.
**Understanding Crypto Dust**
The term “crypto dust” refers to negligible amounts of cryptocurrencies that are often too small to trade. This dust generally accumulates when holders sell most of their coins, leaving behind minuscule amounts that fall below the trading thresholds set by exchanges.
Remarkably, only 36 out of 300 elected National Assembly members reported having any crypto holdings with a monetary value prior to the April 10 elections. The overall percentage of cryptocurrency relative to the total asset value for all lawmakers is merely 0.01%, which is deemed an “insignificant amount” by the media outlet.
Additionally, many who declared crypto assets seem to have acted swiftly to divest from their holdings. For instance, Chun Ha-ram from the New Reform Party noted that his wife possessed 11 crypto wallets collectively worth 22,000 won ($16.51). He explained that six of these coins were airdropped to holders of EOS, while three were given to XRP holders.
Chun Ha-ram, New Reform Party Lawmaker. (Source: JTBC News/YouTube)
**Bitcoin Sell-off Trends**
The outlet also highlighted Democratic Party lawmaker Kim Jun-hyeok, who initially claimed to own Bitcoin valued at 114.2 million won ($85,700). However, he later stated that he “disposed of all” his Bitcoin following its declaration. In a similar vein, Park Chung-kwon of the People’s Power Party reported owning 58.8 million won ($44,128) in Solana (SOL) but revealed that he sold all his SOL holdings back in February.
**Political Scandals Driving Lawmakers Away from Crypto?**
The outlet noted that many lawmakers recorded selling their crypto assets almost immediately after receiving airdropped coins. This trend offers an intriguing glimpse for local crypto enthusiasts, indicating that certain lawmakers have been quite active participants in both Bitcoin and altcoin markets. Notably, one lawmaker reported holding crypto wallets for approximately 45 different altcoins, which they valued at just over $580.
Meanwhile, Kim Nam-guk is set to face trial for ongoing allegations, having been indicted last month for allegedly using cryptocurrency to conceal assets. Prosecutors believe he utilized crypto to hide nearly $7.5 million in wealth.
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